DELAWARE- The Delaware Joint Finance Committee introduced a $6.1 billion operating budget bill for Fiscal Year 2025 on Tuesday. It’s aimed at supporting state workers and retirees while investing in public schools and programs for vulnerable residents. Additionally, a $168 million supplemental spending plan of one-time expenditures was filed.
The pair of budget bills were developed after 16 days of public hearings, where Governor John Carney’s spending proposals were reviewed, and input was taken from state officials, lawmakers, and the public.
Senate Bill 325, the operating budget bill, would fund a third year of state employee pay raises, with merit employees receiving a 2% increase.
Key investments in the FY 2025 budget include $7 million for higher Medicaid reimbursement rates paid to long-term care facilities that will unlock another $10.5 million in federal funds.
It also sets aside $10.3 million for Delaware’s “Purchase of Care” program which helps low-income families afford the cost of early childhood and after-school care for children under the age of 13 and the “Early Childhood Assistance Program” will receive a $3.5 million increase, providing 204 more seats for pre-K learners.
Meanwhile, Senate Bill 326, the one-time supplemental budget, would fund cost-of-living increases of up to 2% for most State of Delaware pensioners, depending on their retirement date.
Other highlights of the one-time supplemental budget include:
- $56 million allocated to the Other Post Employment Benefits Fund to cover the cost of future retiree healthcare needs;
- $8.9 million for primary and general election costs;
- $3.5 million for residential and childhood lead prevention and remediation programs;
- $250,000 for a voluntary middle and high school cell phone pouch pilot program to reduce classroom learning distractions.
Contingency funds will be held in the reserve to help prevent future economic downturns from disrupting core state services. The reserve funds include $50 million to cover future educator raises, part of an ongoing effort to raise base starting salaries to $60,000.
The operating budget bill is July 1, 2024, to June 30, 2025.
